BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

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|                               |SB 584  (Chesbro)           |
|-------------------------------+----------------------------|
|                               |                            |
|-------------------------------+----------------------------|
|Hearing Date: 5/10/99          |Amended: As introduced      |
|-------------------------------+----------------------------|
|Consultant: David              |Policy Vote: H&HS 6-0       |
|Maxwell-Jolly                  |                            |
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____________________________________________________________ 

BILL SUMMARY: 

SB 584 requires the Department of Health Services to  
establish an electronic fund distribution system to ensure  
clinics receiving grants will receive funds in a timely  
manner.

                         Fiscal Impact (in thousands)
  
Major Provisions    1998-99      1999-2000     2000-01      Fund  

EFT system                    unknown costs        General

STAFF COMMENTS:  

This bill may meet the criteria to be placed on the  
Suspense file.

The Department of Health Services cannot establish an EFT  
system.  Payments are made by the Controller who would have  
to operate the system. 

More importantly, delays in the payment of these grant  
recipients are not due to the slow delivery of the printed  
check, which the installation of an EFT system would  
address.  Most of the delays occur before the authorization  
for payment reaches the Controller.  This is where delays  
need to be reduced.